Louisville Housing Authority Agenda and Packet 2012 09 25

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Amber addressed the legal issues: regarding the cash assets that LHA is transferring: the approach we took on the agreement was to focus on unit count instead of cash. you currently have 116 and will be bumping up to 161 units. rather than track each dollar, we tracked overall unit counts. the assets we are transferring aren't going to be enough to manage 161 units. Boulder County will be putting other assets into Louisville beyond what we have already. Colleen's concerns: - as a real estate broker, she has never transferred property without an independent third party stating the value. because of the complexity of the bonds and HUD specifics, we don't know exactly what we are transferring we really never had someone say what this property is worth and what needs repair - S.B. Clark portfolio analysis was not an independent third party. (Jay left) Frank addressed some of the questions and provided history and purpose of the IGA: the purpose of the IGA was to bring, from a collaborative perspective between the three parties, the means to achieve long term sustainability and viability of the properties and to find a way to do it where all of the different needs of the parties were met simultaneously. we made a clear decision about spending money for a third party appraisal up front. in all of our conversations around construction of affordable housing in Louisville, land banking has been an issue for the long term commitment that Boulder County is making in terms, of the expansion of the portfolio, and principals applied in this IGA, we firmly believe that the properties need to be refinanced, rehabilitated, and run effectively to go in perpetuity there isn't an extraction of dollars to pull out of them to apply or land bank additional portfolio expansion requires significant infusion of cash the IGA has been constructed in a way that would support and sustain the portfolio going forward, so that we could bring additional tools to the table for the expansion of affordable housing. Willa addressed the issue of bond proceeds leaving the community: - with interest rates low and with the Lydia Morgan note coming due soon, we do see an opportunity. - we have gotten some good responses to an RFP, under - written by Boulder County. - those proceeds would be reinvested in the Louisville community in rehabbing those units Willa addressed that Michael asserted that Josephine Commons had cost over runs: - Josephine Commons received the Certificate of Occupancy last week - The project is on time and on budget, and looking at how to spend our contingency now. Frank added: Commissioners, the LHA board, and the BCHA board, executed the IGA and sent it to Council for their signature. they approved it with an amendment to extend the term from 30 to 50 years. that amendment is before LHA for consideration and approval. staff supports the increase to 50 years Amber clarified Council's decision: - Council felt that 30 years was too short a term and wanted to see something a little longer. in perpetuity is not legally feasible it's hard for to predict what could happen 75 -100 years Council was comfortable with 50 years. 4